Freshpet posts growth in Q3, lowers 2025 guidance

Freshpet reported a 14% increase in net sales to $288.8 million (€272M) in Q3 2025. This growth was driven by volume gains of 12.9% and a favorable price/mix of 1.1%.

Net income increased to $101.7 million (€96M) from $11.9 million (€11M) in the same quarter of 2024. This growth was driven by the deferred income tax benefit, higher sales and lower expenses.

At the same time, net income was partially offset by the decrease in gross profit as a percentage of net sales, which stood at 39.5% or $114.2 million (€108M), compared to 40.4% or $102.2 million (€97M) in the previous year. The decrease in gross profit was primarily due to reduced leverage on plant expenses, partially offset by lower input costs.

Gross profit and adjusted earnings 

The adjusted gross profit for the period was $132.8 million (€125M), or 46% of net sales, compared to $117.7 million (€111M), or 46.5% of net sales last year.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 25% to $54.6 million (€51M) from $43.5 million (€41M) in Q3 2024.

“While we are not where we expected to be at the start of the year, we firmly believe Freshpet is best positioned to capture the future growth of the category and expect to continue to build market share, grow household penetration and win a disproportionate share of new pet parents,” says Billy Cyr, Freshpet’s CEO.

9M performance

For the first 9 months of FY2025, Freshpet reported a 14.6% increase in net sales, equaling $816.8 million (€769M), compared to $712.5 million (€670M) during the same period in FY2024. This was driven by volume gains of 12.8% and a favorable price/mix of 1.8%.

Net income soared to $105.3 million (€99M) from $28.8 million (€27M) last year due to the deferred income tax benefit reflected in Q3.

Gross profit rose by nearly 15% to $326.2 million (€307M), or 39.9% of net sales, compared to $284.4 million (€267M), or 39.9% of net sales during the same period last year.

Meanwhile, adjusted EBITDA stood at $134.5 million (€127M) from $109.2 million (€103M) in the previous year.

Guidance

For FY2025, Freshpet has adjusted its net sales growth forecast to 13%, the lower end of the previous estimate of 13%–16%.

The company also revised its adjusted EBITDA forecast to $190 million (€179M) to $195 million (€184M), down from the previous estimate of $190 million (€179M) to $210 million (€198M). 

“We are revising our guidance to the lower end of the previous range to reflect the current environment. We are also maintaining financial discipline by further lowering our capital spending plans, which helped us achieve positive free cash flow in the third quarter,” Cyr says.

The New Jersey-headquartered company also expects to be free cash flow positive in FY2025 – a year earlier than its original goal.